Can Life Insurance Be Used for Savings?

Advertisements and appealing packages in today’s commercialized world encourage us to buy impulsively without considering the consequences. This leaves little, if any, for savings.

Life insurance proves to be a great saving tool as it not only fulfills the need for savings but it also provides protection to our loved ones during uncertainties.

Prerna, a recent graduate, is just starting out in the professional world. It is thrilling that Prerna is financially independent. Prerna, a millennial, is tempted by the advertisements, notifications, and e-commerce websites that encourage her to purchase multiple items that she didn’t need.

Prerna’s parents noticed that Prerna was overspending on unnecessary items. They wanted to tell her that she should be saving regularly for her future goals.

Prerna was an impulsive buyer and needed a plan to help her manage her money.

This is why, Prerna’s parents thought of advising her to invest in Edelweiss Tokio Life Wealth Plus.

Edelweiss Tokio Life Wealth Plus is a Unit Linked Insurance Plan that enables systematic monthly investments that can help one accumulate and grow his/her wealth. The policyholder does not invest alone. In fact, the company will also invest in the funds selected by the policyholder as an additional allocation or premium booster. As the policy term increases, the premium boosters that the company invests in increase at regular intervals. The lock-in period is five years. This encourages you to save for your long-term goals. Edelweiss Tokio Life wealth plus is a tax-saving investment plan. The premiums paid as well as the return received are exempted from taxes. The power of compounding along with the rupee cost averaging makes unit-linked insurance plans in India a preferred choice.

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Prerna was convinced by her parents to invest online. They were able to reward her for saving consistently and provide her with premium boosters and additional allocations.

A life insurance policy can help you save money in a way that is more affordable than a simple savings account. An life insurance policy is an important part to your portfolio. This can help you build wealth and provide a safety net in the event of an unfortunate circumstance. This situation doesn’t mean you have to worry about the future of your family.

You can also save money by purchasing other life insurance products.

  1. Whole Life Insurance pays the insured sum upon death, provided that renewal premiums have been paid. After a set period, this type of life insurance policy offers cash value. As the insurer invests and accumulates premiums, the cash value grows over time. If the insured needs to withdraw cash, the protection element can also be removed. However, the insured must keep the balance with the insurer in order to continue protected.
  2. Endowment Plans is typically purchased as a form of compulsory savings. It offers guaranteed returns. Endowment policy combines protection and savings. The money is paid at the expiration of a specific period after the policy matures. All premiums paid to the nominee will be paid if the insured dies before the policy matures.
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As you can see, life insurance products can be used to save money and help you plan for important life events. A good financial plan, which takes into account your risk appetite, is all you need to build a financial portfolio that will make you proud.

Prerna’s main goal is to save money for her future goals.

It is best to get started as soon as you can so that compounding power can work miracles and increase the amount of money saved.

On this world saving’s day make a prudent choice by saving your money in online life insurance policy today!